Telecom Knowledge Base: Amit Morya

Amit Morya

Telecom Knowledge Base

Mass Commerce  Growth

Driver

 Rural Indian Market Approximately 70% of the Indian population is rural Less than half have a bank account and access to financial services Rural telecom subscriber base is growing at the CAGR of 85%

 Total

M-Commerce Market

 Ongoing fiscal is projected to be about

Rs. 880 bn in FY 2010

Mass Commerce  Challenges  Illiteracy and lack of awareness among

rural population  Interoperability among service providers Availability of seamless service accessibility

 Security is a matter of concern Vulnerabilities in the handsets and associated platforms RBI strict guidelines for secure mobile transactions

Mass Commerce  Rural

Initiatives

 Grameen Koota (Village Assembley):

mChek

Rural microfinance institution severing over 160,000 members throughout Karnataka

 Plans to initiate similar offering: CanvasM

Mobile Marketing Advantages  Greater reach





India boast of 370 mn mobile users (which is expected to double in the next three years) Cellular subscribers outnumbered TV sets and desktop/laptop population

Advertising can be targeted and personalized

Targeted advertisement: For example, the Big Bazaars of India want to announce a sale where the customer will gets a 50% discount if he/she gets to the store within six hours

On the spot information and involvement of fun factor

Mobile Marketing Advantages  More economical  Interactive and possibility to engage the consumer in a dialog

Mobile Marketing  Worldwide

Excepted

 Spain 76% of mobile users receive Ads  In France over 62% and in Japan 54%

phone owners receive ads  In Japan, nearly 45% of mobile phone owners believed to click on ads they receive

Mobile Marketing  Solutions

Offered

 Reliance Communications: Neon + Flytxt  mGinger, mGarlic, YouMint, 160by2: SMS

Advertising  Yankee Group: in-game advertising

VAS  Fact

File

 VAS contributes 10-14% of total telecom

revenue; expected to cross 30% of service providers revenue in the next five years  In FY 2007-08 the VAS market stood at Rs. 4576 Crore and grew by 60% w.r.t. Rs. 2860 Crore in FY 2006-07  Among highest revenue generating services are SMS, ringtones/CRBT and Voice VAS

VAS 

Growth Driver Subscribers Growth 8mn subscribers every month Huge growth in the number of subscriber from R1/R2 markets Penetration of mobile VAS services

Product Innovation P2A (Person to Application): Popular SMS votes-based programs on TV A2P(Application to Person)

Content Innovation Personalized and intuitive user interface VAS delivered on the voice platform Mobile advertising using VAS model

VAS

VAS 

Bharti Telesoft  Acquired Jatayu – a leading player in the mobile internet space  Strong base in India, Middle East, Europe, Africa and South

Africa, Jatayu has a strong foothold in Latin America, US and Apac region



OnMobile  Biggest player in the VAS space  Made the debut on the stock exchange in 2008  Acquired Voxmobili – A specialist in personal mobile data

management software



Canvas M  Launched India’s first multiplayer mobile gaming services with

Reliance Communications  Content delivery management portal for a major European Sports Association

VAS  Market

Dynamics

 VAS content still driven by ABC –

Astrology, Bollywood and Cricket  Revenue growth has been driven by SMS (including P2P, A2P and P2A), contributing over 55% of the total VAS revenue in 2007  Offered across multiple access channels like Voice, SMS, WAP and USSD and ondevice portal

VAS Product Innovation  Phone Backup Allows subscribers to effortlessly take a back up of all types of personal information including files, messages, photos, contacts, and task stored on their mobile  M-Search Deliver user requested content. The request can either be via voice or text. M-search identifies the users request and immediately renders the requested content  One Touch RBT When a mobile subscriber likes someone’s ring back tone and wants to set the same as their RBT, they can do so by just pressing the “*” button  On Device portal service Delivers portal content on mobile phones through a client application